Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: D.R. Horton, Inc. (NYSE: DHI), Public Storage, Inc. (NYSE: PSA), Agilysys, Inc. (Nasdaq: AGYS), SiRF Technology Holding Inc. (Nasdaq: SIRF) and Green Mountain Coffee Roasters, Inc. (Nasdaq: GMCR).
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Here are highlights from Friday’s Analyst Blog:
D.R. Horton a Hold Post-Earnings
D.R. Horton (NYSE: DHI) reported fourth quarter EPS of -$2.53. This is due to lower gross margin on home sales and larger charges taken for inventory impairments and land option cost write-offs.
D.R. Horton generated $480 million in operating cash flow in Q4 thanks to land sales and fewer dollars invested in homes and land & lots. Also, DHI cut the quarterly dividend in half to $0.0375 from $0.075, which will help to preserve cash on the balance sheet.
Public Storage Downgraded to Hold
Public Storage, Inc. (NYSE: PSA) is a fully integrated, self-administered and self-managed real estate investment trust (REIT) engaged in the acquisition, development, ownership and operation of storage facilities in 38 states and seven European nations. The company currently has interests in 2,017 storage facilities, with 127 million rentable square feet of space in the US.
The company missed our 3Q FFO [funds from operations] estimates of $1.30 per share primarily due to foreign currency losses. Operationally, PSA's properties continue to perform relatively well: 3Q same-store NOI and rental rates increased in most of the company's US markets. The company has plenty of cash to actively pursue acquisitions in a market where pricing for self-storage facilities is getting much more attractive.
Agilysys Must Get Nimble
Agilysys, Inc. (Nasdaq: AGYS) posted disappointing revenue in the first and second quarter due to weakness in its TSG group as customers deferred purchase decisions.
We are not surprised that AGYS is facing greater pressure than its peers given its exposure to the retail and hospitality industries, but are puzzled as to why the portion of its business not exposed to these two verticals is performing the weakest. Owing to further weakness in capital spending and soft demand for IT investment, AGYS reduced its fiscal 2009 guidance.
SiRF Tries to Keep Balance
SiRF Technology Holding Inc. (Nasdaq: SIRF) is a fabless OEM of GPS semiconductor chipsets, semiconductor-based modules and associated software.
SiRF reported a difficult September quarter as demand for Personal Navigation Devices (PNDs) slowed and competition has increased. Gross margin continues to fall from the prior year as the firm sells a higher mix of low-margin System-on-a-Chip (SOC) products.
Green Mountain Valuation Lofty
Green Mountain Coffee Roasters, Inc. (Nasdaq: GMCR) is a growth company in the premium coffee and tea industry. Management is implementing a growth strategy based on a multi-channel geographic penetration business model. The company is expanding geographically and by adding new relationships.
Net sales have grown at a 35.9% five-year compound annual growth rate and the company has generated 24 consecutive quarters of double-digit sales growth. Better-than-expected quarterly results along with management’s positive outlook for fiscal 2009 bode well for the company. The Hold rating is maintained due to high valuation and rising input costs.
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